Bafna Pharmaceuticals Limited has announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, demonstrating strong operational performance with significant growth in profitability. The Chennai-based pharmaceutical company's board approved these results on February 11, 2026, following review by the audit committee and limited review by statutory auditors.

Financial Performance Highlights

The company delivered impressive financial results for Q3 FY26, with substantial improvements across key performance indicators:

Other income for the quarter increased significantly to ₹121.94 lakhs from ₹18.96 lakhs in Q3 FY25, contributing to the overall income growth. Total comprehensive income reached ₹179.07 lakhs compared to ₹95.68 lakhs in the previous year.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Bafna Pharmaceuticals maintained strong momentum with consistent growth:

The nine-month results showcase the company's ability to improve profitability substantially while maintaining steady revenue growth.

Operational Cost Management

The company's expense management during Q3 FY26 reflected operational efficiency improvements. Total expenses increased to ₹3,766.83 lakhs from ₹3,241.75 lakhs in Q3 FY25. Key expense components included:

• Cost of material consumed: ₹2,399.82 lakhs (Q3 FY25: ₹1,687.42 lakhs)
• Employee benefits expenses: ₹534.52 lakhs (Q3 FY25: ₹525.72 lakhs)
• Manufacturing expenses: ₹505.95 lakhs (Q3 FY25: ₹587.50 lakhs)
• Finance costs: ₹86.24 lakhs (Q3 FY25: ₹63.54 lakhs)

Notably, the company benefited from a favorable change in inventories of work-in-progress and finished goods, recording a positive impact of ₹179.01 lakhs.

Regulatory and Compliance Matters

The company disclosed several regulatory developments in its financial results. Bafna Pharmaceuticals has received GST demand orders totaling ₹235.47 lakhs and another order for recovery of GST refunds amounting to ₹331.09 lakhs from earlier years, along with applicable interest and penalty. The company has appealed against the GST demand and intends to challenge the refund recovery order through appropriate legal channels.

Additionally, the company reported foreign currency receivables of ₹205.00 lakhs as of December 31, 2025, which remain outstanding beyond RBI stipulated time periods. Management is pursuing approval for time extension or write-off of certain balances.

Corporate Structure and Capital

Bafna Pharmaceuticals maintained its paid-up share capital at ₹2,365.63 lakhs with face value of ₹10.00 per share throughout the reporting periods. The company's other equity stood at ₹6,115.02 lakhs as per the balance sheet for the year ended March 31, 2025. The consistent capital structure reflects the company's stable financial foundation while delivering improved returns to shareholders through enhanced profitability.

Bafna Pharmaceuticals Limited has received a credit rating outlook upgrade from ICRA Limited, with the rating agency revising its outlook from Stable to Positive on January 23, 2026. The company informed stock exchanges about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited has taken rating actions on the company's bank loan facilities totaling Rs. 50.00 crores. The rating agency reaffirmed the existing ratings while upgrading the outlook, signaling improved confidence in the company's credit profile.

Facility-wise Rating Breakdown

The rating actions cover various banking facilities across different instruments. ICRA's detailed assessment includes term loans, working capital facilities, and trade finance instruments.

Banking Relationship

The rated facilities are primarily with ICICI Bank Limited, covering both fund-based and non-fund based requirements. The facilities include term loans of Rs. 25.87 crores, cash credit facilities of Rs. 20.00 crores, and letter of credit facilities of Rs. 5.00 crores, along with unallocated limits of Rs. 4.13 crores.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about the rating revision. The communication was signed by Mohanachandran A, Company Secretary & Compliance Officer, ensuring proper regulatory compliance.

Rating Surveillance

ICRA Limited noted that the ratings will become due for surveillance within one year from the date of the rating communication letter dated January 23, 2026. The rating agency reserves the right to review and revise the ratings based on new information or changing circumstances that could impact the company's creditworthiness.